In 2024-2026, an Enagás share will be worth €1 instead of €1.74

Last Tuesday, Enagás announced a dividend cut to €1 per share for the 2024-2026 period, after the Board of Directors approved a new capital structure.

The dividend cut was already expected by many analysts, who considered it unsustainable and too high. According to the initial assessment of experts, it is a "realistic" measure that will allow the company to make the large investments it plans to make in the coming years, with more guarantees.

Enagás specified that the new dividend amount is sustainable due to the high predictability of cash flows, a stable regulatory framework and the high visibility of dividends from international subsidiaries.

It also emphasized sustainability in the future, given the importance of cash flow stability of the company's traditional business beyond 2026.

In any case, the dividend cut is very significant, as the dividend paid for 2023 was 1.74 euros per share.

According to Enagás, the reduction was made in order to strengthen the structure of the balance sheet and make it compatible with the hydrogen highway infrastructure investment plan currently underway. In this regard, Enagás plans to invest around 3.2 billion euros starting in 2026.

The company noted that the new dividend amount is compatible with a solid and optimal balance sheet structure, meets the requirements of credit agencies to maintain a BBB rating, and is in line with comparable national and international companies.

Enagás also announced a 430,000 share repurchase program for an amount of 6.2 million euros, aimed solely at fulfilling the obligations arising from the flexible share grant plan for employees and executives. The program will end no later than August 20.